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How many units must the company sell in order to break even

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Question 1: A local manufacturing company is attempting to assess manufacturing capacity and determine whether a sales discount can be offered in the future. , they need to have a better understanding of where the break-even point is for current pricing. Assume the company is able to sell each item for $350 against variable costs per unit of $200.

Required: If the company has fixed expenses of $56,250 during the period, how many units must the company sell in order to break even?

Question 2: LunaSol Corporation managed to get costing data from a competitor and decided to analyze the total job costs for the other company using the High / Low Estimation method. The units manufactured and sold (boxes of paper) spanned between a minimum of 500 boxes and a maximum of 3,500 boxes. The total costs for each month spanned between a minimum of $1,500 and a maximum of $6,000.

Required: What is the estimated variable cost per unit?

Reference no: EM132548805

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